Yellowknife (Dec 10/03) - Derek Burleton, senior financial economist for the TD Financial Group, came to Yellowknife last week to speak about economic opportunities on the horizon within the Northwest Territories.

Derek Burleton, senior economist with TD Bank Financial Group, provides his opinion on how we can best steer the NWT economy. - photo courtesy of TD Bank Financial Group

In the Q&A that follows, Burleton provided his thoughts on how the Government of the Northwest Territories could best achieve its economic goals.

Yellowknifer: Are there any ways the Government of the Northwest Territories could raise revenue or reduce overhead?

Burleton: It's a tricky feat. The tax system could address fiscal challenges ... The way the funding formula is calculated, the federal government assumes the territorial government charges a sales tax. While the territory does not charge a sales tax, it is being treated as such by the federal government. It's important to state I'm not recommending this but it may be the most viable short-term option.

Yellowknifer: What is the best way to grow our economy?

Burleton: Taking advantage of the region's vast wealth and resources, but it is really only the beginning. The rising incomes from resource development can lay the foundation for other non-resource sectors to flourish.

There's enormous potential for hydro-electricity in the Northwest Territories and if the Mackenzie Valley Pipeline goes ahead, that will make it easier for hydro to thrive.

Yellowknifer: How much benefit can be derived from the pipeline?

Burleton: The potential is enormous. The construction phase will provide an immediate short-term benefit, but it's the operations phase and the production phase where the region will truly benefit.

Yellowknifer: How should the territorial government encourage the development of small to medium-sized businesses?

Burleton: To allow small to medium-sized businesses to flourish, the Government of the Northwest Territories needs more of the up side from resource development.

Devolution negotiations have been moving along at a slow pace. We would truly encourage parties in the devolution talks to wrap up negotiations. It's a major barrier getting in the way of growth.

Yellowknifer: Who do you see as being primarily responsible for infrastructure development in the NWT?

Burleton: Government shares a large responsibility for putting public infrastructure in place. However, the business sector is one of the largest beneficiaries.

The business sector needs to be involved. There are tremendous opportunities on that front. There's a lot of interest in the financing and construction of the Deh Cho bridge (at Fort Providence) and a lot of interest in how that progresses ... The business sector should be involved in footing some of the bill.

Yellowknifer: If devolution provides a resource-sharing agreement similar to Alberta's, will that spur growth?

Burleton: Rather than thinking Alberta, you should be thinking Newfoundland and Nova Scotia. Alberta is not an equalization province like Nova Scotia and Newfoundland are and as the Northwest Territories is. It's roughly 20 cents on each dollar in the NWT right now. Effectively, those two governments in Nova Scotia and Newfoundland keep 30 cents of each dollar in resource royalties.